JSW Infrastructure IPO opens today: 10 Key Insights to Consider Before Investing

JSW Infrastructure, a prominent entity within the JSW Group, is gearing up for its highly anticipated initial public offering (IPO) scheduled to kick off on September 25. This marks a significant milestone as it is the group’s first public issue in over a decade.

To help you make an informed decision about investing in this IPO, here are 10 essential details to keep in mind:


1. IPO Dates

  • The IPO opens for subscription on September 25 and will close on September 27.

2. Price Band

  • The price band for the IPO has been fixed at Rs 113-119 per share.

3. IPO Size

  • JSW Infrastructure aims to raise Rs 2,800 crore through the IPO at the upper end of the price range.
  • Notably, this IPO consists solely of a fresh issue of shares by the company, without an offer-for-sale component.

4. Objectives of Fresh Issue

  • The net proceeds from the IPO will be utilized for various purposes, including debt repayment amounting to Rs 880 crore.
  • Additionally, funds amounting to Rs 1,029.04 crore will be allocated for expansion and upgrades at Jaigarh Port, a subsidiary of JSW Jaigarh Port.
  • The expansion of Mangalore Container Terminal, another subsidiary (JSW Mangalore Container Terminal), will receive Rs 151.05 crore from the fresh issue proceeds.
  • The remaining funds will serve general corporate purposes.

5. Lot Size

  • Investors can subscribe to a minimum of 126 equity shares (one lot) and in multiples of 126 shares thereafter.
  • For retail investors, the minimum application amount is Rs 14,994 (for 126 shares), and the maximum investment is capped at Rs 1,94,922 (1,638 shares), as they cannot exceed the Rs 2 lakh investment limit.

6. About the Company

  • JSW Infrastructure specializes in maritime-related services, including cargo handling, storage solutions, and logistics services.
  • Its extensive network of ports and terminals boasts long concession periods, offering long-term revenue stability.
  • The company has experienced rapid growth in cargo handling capacity and volumes, making it a key player in the industry.

7. Financial Performance

  • JSW Infrastructure has shown remarkable growth, with revenue from operations growing at a CAGR of 41.15 percent between FY21 and FY23.
  • The company’s net profit for FY23 surged by 126.8 percent year-on-year.
  • In Q1 FY24, the net profit increased by 67.3 percent compared to the same quarter in the previous fiscal year.

8. Promoters

  • The Sajjan Jindal Family Trust holds a majority stake of 90.91 percent in the company.
  • Other significant shareholders include JSW Infrastructure Employees Welfare Trust, JSL, and Siddeshwari Tradex.

9. Risks and Concerns

  • Various risks, including dependence on government agreements, cargo types, and debt levels, need to be considered before investing.

10. Grey Market Pricing and Listing Date

  • Grey market sources suggest that JSW Infrastructure’s shares are trading at a premium of approximately 12 percent above the upper price band.
  • The IPO’s basis of allotment will be finalized by October 3, with shares credited to investors’ demat accounts by October 5.
  • Trading in JSW Infrastructure’s equity shares on the BSE and NSE is expected to commence on October 6, as per the IPO schedule.

This IPO marks a significant opportunity for investors to participate in the growth story of JSW Infrastructure. However, it’s crucial to carefully evaluate the risks and potential rewards before making an investment decision.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​
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